SembCorp makes progress in growing North Vietnam market

August 13, 2007

• New customers commit to VSIP-Bac Ninh
• MOU signed to explore development of new Hai Phong township project
• Signings at Istana witnessed by Prime Ministers of Vietnam and Singapore

Vietnam Prime Minister Nguyen Tan Dung and Singapore Prime Minister Lee Hsien Loong today witnessed signing ceremonies for the Vietnam Singapore Industrial Park’s (VSIP) VSIP-Bac Ninh industrial township project as well as an Memorandum of Understanding (MOU) for a new township project in Hai Phong. The event was hosted by SembCorp’s new joint venture, Vietnam Singapore Industrial Park and Township Development Joint Stock Company (VSIP JSC), established recently in July 2007 to develop the VSIP-Bac Ninh industrial township.

New customers commit to VSIP-Bac Ninh
Ten new customers from six countries and territories signed letters of intent committing investments worth US$183.5 million to set up operations in VSIP-Bac Ninh. The investments are set to occupy 96.5 hectares of land, or 20% of the marketable area in the industrial park and township. These commitments by customers are in addition to VSIP JSC’s total investment capital of US$103.7 million to develop the 700-hectare VSIP-Bac Ninh, announced last month. The first phase of infrastructure development for this newest and third VSIP project in Vietnam will commence in January 2008.

VSIP-Bac Ninh is located at the border of Hanoi’s Gialam District and Bac Ninh Province, 18 kilometres from downtown Hanoi. The 500-hectare industrial park will be home to non-pollutive, high-tech, high value-added, capital intensive industries such as those in the electronic and pharmaceutical sectors, while the 200-hectare township will comprise commercial and residential developments as well as services to support residents of Bac Ninh province and the surrounding areas.

Ms. Low Sin Leng, Co-Chairman of VSIP JSC and Executive Chairman of SembCorp Parks Holdings, remarked “We thank our new customers for their confidence in the VSIP brand name, as demonstrated by their commitment to VSIP-Bac Ninh shortly after the announcement of the project on 9 July 2007.”

“With this latest project in Bac Ninh, VSIP has established three industrial park and township projects in Vietnam totalling 1,545 hectares. VSIP I and II have attracted 330 customers to-date, with the total investment value by customers who have received investment licenses amounting to roughly US$2 billion. These parks alone are expected to generate employment for 75,000 Vietnamese.”

“SembCorp and our partners Becamex have worked very well together to drive the VSIP projects in Vietnam. The success of VSIP has also been possible because of the tremendous support of the Vietnam political leaders and local authorities.”

MOU to explore development of new township and industrial park in Hai Phong

On the same occasion, an MOU was also signed between VSIP JSC and the People’s Committee of Hai Phong, for VSIP to explore the feasibility of developing a 1,200- hectare township and industrial park in the prime location of Hai Phong City, the third-largest city in Vietnam.

Hai Phong City has been designated for development as one of the five Grade 1 cities of Vietnam along with Hanoi in the North, Danang in the Centre and Ho Chi Minh City and Can Tho in the South. Hai Phong City is 200 kilometres from the Vietnam-Chinese border, and the exit point of two important economic corridors in North Vietnam, the first being the Kunming-Lao Cai-Hanoi-Hai Phong corridor, and the second being the Nanning-Lang Son-Hanoi-Hai Phong corridor.